Investment for Grandchildren

[missprim]

I would like to invest �100 for my Grandchildren into something they cannot get until they are either 18 or 21 years old. Obviously I would like the money to receive a good interest, but not something that carries risks.
Had a look at Childrens Bonus Bonds with National Savings but investing �100 only increases to �124 after 5 years and this doesn't seem much to me.
My Grandchildren are 2 years old so the money would be invested for 16 to 19 years.
Do you have any ideas please?

[sammy snake]

Well �124 after 5 years is a profit of �24 which is almost a quarter of what you initially invested, it doesn't seem bad to me! That is an interest rate of about 4.5%. Using the same rate over 16 years, you would end up with about �205. You have to bear in mind that this wouldn't be worth anywhere near what �205 would be worth today.

The sum you are investing is too small to make massive returns.

[eyebrows]

i have to agree with that man above.....as nice a gesture as it seems, he is right....perhaps you can buy them a lottery ticket every month for teh next ten years......you can expect major returns on that.....lol

[pug100]

Try this article from mse

http://www.moneysavingexpert.com/savings/child -savings-tax-free

At the moment Chelsea and Yorkshire building societies offer the best rates 5.45% and 5.4% On �100 this will give you an annual return of �5.40

[Skyline D]

As others have said, �100 is such an irrelevant amount in investment terms that you aren't going to see any significant returns from it. �124 in 5 years time isn't bad at all actually but if you're looking to get into four figures back at the end of the investment life you're going to have to start with a much bigger capital sum or take on a much riskier investment (even supposing you can find one).

[missprim]

Thank you sammy,eyebrows,pug and skyline.
I appreciate what you are saying about this being a small amount, but as an 'extremely' poor pensioner, I'm afraid it is all I can afford. Will have a look at the link you sent pug,perhaps it will be better for me to open an account for them and add to it over the years rather than just buy a one off thing.